Rising number of households under financial pressure

In excess of two million working households in Britain are facing money worries, new research has suggested.

A study of some 2,000 homes carried out by the consumer group Which? revealed the sheer number of people who are struggling with their finances.

Particularly troubling is that around two fifths of households thought that their financial situation was likely to deteriorate over the course of the next year.

Common pressures included mounting levels of debt, housing costs (chiefly mortgage payments or rent), cost of living increases and investments.

In the teeth of these difficulties, around a fifth of households deemed to be “working and struggling” had taken out a loan or credit card, borrowed money from loved ones or turned to overdrafts.

Vickie Sheriff, Which? director of campaigns and communications, said that she wanted to see the Government take steps in next week’s Budget to provide additional support.

“It’s alarming to see how millions of working households in the UK are struggling financially,” she added.

The survey coincided with separate research by the insolvency trade body R3, which found that around a quarter of Britons were suffering with mental health problems as a result of their financial situation.

In response to the renewed concerns, a Treasury spokesman said: “We have taken action to help families with the cost of living by taking millions out of income tax together, freezing fuel duty for a seventh successive year and introducing the National Living Wage – helping those on the lowest incomes to achieve the fastest pay rise in over 20 years.”